What is a Bond Coupon?

DeFine Glossary #7

Defined: Bond Coupon

Coupons refer to any interest earned as money from a Bond.

If you've loaned money to a company, they usually fix an interest rate & pay it back to you annually.

Example: Give Rs 100 to Company X for 1 year at 5% interest rate.

Bond's face value=Rs 100.

Coupon=Rs 5.

Simply Put,

Coupon refers to the interest you earn on a bond as a percentage of the bond's face value

Find your next investment option on Fi Money

Start with as small as Rs. 10!